As car-sharing is increasing in popularity, the need for insurance also increases. This article will give you eight essential tips on how to obtain the best insurance for your company.
What Type Of Company Is It?
The first thing to check when buying insurance for a car-sharing company is whether or not it’s an actual business or if it’s just registered for legal reasons. If the answer is the latter, you most likely won’t need commercial vehicle insurance. However, you will still need standard property insurance to cover the damage that may occur to your business assets (cars).
If what you’re registering for is a legitimate company with employees, then you’ll want to buy commercial vehicle insurance along with any other types of coverage that are especially pertinent to your industry.
How Many Cars Are Being Used?
It might seem obvious, but one should always consider how many cars they plan on using and where. If, for example, you plan on using 20 or fewer cars (or shareable bikes), then you’ll only need to ensure those few. However, if you’re planning on using more than that, it might be worth purchasing additional coverage if your fleet is vandalized or stolen.
How Old Are The Vehicles?
As with anything else, older cars tend to cost less and usually don’t come as a surprise when they break down. Ideally, any car-sharing company such as Avail car sharing should have newer vehicles because they’re likely to be used daily and require much more maintenance. It’s also important to consider your driver’s age(s).
While some drivers may not be necessarily young (e.g., recruiting parents), others may be, so you’ll need to consider that.
Where Will The Vehicles Be Parked?
Another essential thing to consider is where you’re going to store your fleet of cars because it could affect how much it will cost to insure them. For example, if they’re mostly or always behind closed doors (e.g., garages), this might not significantly affect your rates. However, suppose they’re kept outside (weather permitting), especially near busy roads and highways.
In that case, there’s a higher chance that you’ll have to pay more for insurance. Keep in mind that other factors like community regulations related to noise/odors should also be considered.
Is Car Sharing Part Of Your Core Business?
If yes, then you’re most likely going to want commercial vehicle insurance. If not, then you’re probably just registering with your company for legitimate reasons and will only need standard property insurance.
What Is The Purpose Of Car Sharing?
There are at least two fundamental purposes for car-sharing, one being part of a business with employees, another being peer-to-peer where people rent one another’s vehicles. It might seem more obvious which type of coverage the latter would require, but it depends on how often the cars are used.
Suppose they’re used very frequently by multiple renters. In that case, commercial vehicle insurance will be necessary because that will cover each renter’s liability to others. Still, if one or two people only use cars, then standard property insurance could suffice.
How Long Has It Been in Business?
The longer a company has been around, the more likely it is that they’ll have time to build up a customer base and establish trust in them, thus increasing their chances of selling car-sharing services successfully. This doesn’t necessarily mean you should go for an older company, because plenty of young ones have done just fine.
Ultimately, having enough experience under your belt will be beneficial because it could help you earn loyal customers who aren’t unaware of your reputation. This will especially come in handy when trying to attract potential renters.
To have the best chance of receiving the coverage you want and finding a policy that fits your needs, there are many things to consider when buying commercial auto insurance. Car sharing companies should search for affordable commercial car insurance from a reputable insurer.
With the proper research and knowledge of what to look for in coverage, limits, and exclusions, businesses will be able to make intelligent decisions about their policies and make sure they receive full coverage with minimal premiums.
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